If a Firm with Credit Terms of 1/10 Net 30

question 33

Multiple Choice

If a firm with credit terms of 1/10 net 30 were to change its terms to 3/10 net 30,the result would probably be

• A) increased bank loans.
• B) increased accounts receivable turnover.
• C) an increase in the average level of accounts receivable.
• D) a decrease in accounts payable.

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Definitions:

Insulated

Protected with a material that prevents heat, sound, or electricity from escaping or entering.

Square Feet

A measure of area equivalent to a square that is one foot on each side.

Irregularly-shaped

Describing an object or area that lacks a regular or uniform shape.

Random Points

Specific locations or values chosen without any particular pattern, order, or predictability.